Category Archives for Indicators

Moving Averages – Simple vs. Exponential

In this round of testing we put the Simple (SMA), Exponential (EMA) and Double Exponential (D-EMA) Moving Averages through their paces to identify which is the best and what characteristics can be expected as the length of each average is adjusted. We tested Long and Short trades using Daily and Weekly data, taking End Of […]

Continue reading

Best Stock Market Indicator Ever: Rises to 85%; Secondaries Are Negative

The $OEXA200R (the percentage of S&P 100 stocks above their 200 DMA) is a technical indicator available on StockCharts.com used to find the “sweet spot” time period in the market when you have the best chance of making money. The weekly charts below are current through the week’s close. Important Notice: As of June 17, the criteria […]

Continue reading

Stochastic Oscillator (SO) – Test Results

The Stochastic Oscillator (SO) is a widely used momentum indicator. As part of the Technical Indicator Fight for Supremacy we have put it to the test through 16 different global markets~ (a total of 300 years data) to find out how well it works and what settings produce the best returns. First of all let’s establish how the market performs while […]

Continue reading

Price-Volume Ratio Identifies Reversals

Sometimes the simplest ideas work the best.  Before market peaks, shares typically transition from strong (institutional) hands to weak (retail) hands.  Before market troughs, shares usually move from weak hands back into strong hands.  Both of these scenarios result in increased trading volume. Given this premise, I created a simple indicator based on the ratio […]

Continue reading

Golden Cross – Which is the best?

The Golden Cross typically referrers to the crossing of the 50 and 200 Day Simple Moving Averages. When the shorter term average moves above the longer term average this is seen by many as the beginning of a sustained bullish period and vise versa. It is not wise however to risk your money in the […]

Continue reading

Relative Strength Index (RSI) – Test Results

The RSI is a staple indicator of the technical analysis community but how good is it, really?  What are the best settings?  What does its trade profile look like?  Ask around and no one can tell you…  Does it not seem strange that so many traders can be using an indicator without solid data on its performance?  […]

Continue reading

Combine Indicators to Identify High-Probability Reversals

I read about this indicator in an article titled “The DMI Stochastic,” which appeared in the January 2013 issue of Technical Analysis of Stocks and Commodities.  The article was written by Barbara Star.  In the article, Star combined two well-known technical indicators to create an innovative new tool that can be used to identify high-probability reversal […]

Continue reading

MACD – Test Results

The MACD is one of the most widely used technical indicators in the world and is included in every charting program worth owning.  Unfortunately however, reliable data on its performance is almost non-existent.  Are the standard settings of 26, 12, and 9 the best?  To reveal the answer we tested 2000 different combinations through 300 years of […]

Continue reading

The Use of Recession Indicators in Stock Market Timing

In previous articles I showed that stock market timing models, such as IBH and MAC, can provide better returns than what one could get from a buy-and-hold strategy. However, investors with long-time horizons can also do well by only exiting the stock market at beginnings of recessions and returning to the market when the market is recovering. Recession […]

Continue reading

Is This The Best Stock Market Indicator Ever?

By  John F. Carlucci of Advisor Perspectives As we all know, the key to successful investing is very simple: “Buy low, sell high.” However, you enter a chaotic, fun-house world of uncertainty once you ponder the logical follow-up question: “When?” Investors desperate to solve this riddle have come up with solutions as varied as Fibonacci Analysis […]

Continue reading
>